All Forum Posts by: Andrew Gudmunson

@Chris Seveney

With the 10/10/10 structure are you doing interest only payments with a balloon at the end?

@Theresa Harris I know by state law I have to give at least 30 days notice before raising rent, but I haven't seen anything specific on the maximum amount I can raise rent yet. Thanks for the advice, I'll look around and see what else I can find!

Hi all! I've been really bad about staying updated with the BP forums! :/

A little background on me, my wife and I live in rural eastern WA and are currently house hacking a duplex. We're looking into purchasing a second duplex via owner financing and have been in negotiations with the current owner. According to the current owner he's had no issues with the current tenants, there have been no late payments or anything of the sort, but he's never required a lease to be signed. He currently has both units quite a bit under market value. The property is two stories with a finished basement. The bottom unit has 2 bedrooms and 1 bathroom on the main floor and one bedroom with another bathroom in the basement. The upper unit is a 2 bedroom 1 bathroom on the top story. Each unit is about $100-$150 under current market value. 

I'm quite inexperienced with this kind of thing and was wondering if anyone could lend some advice on how to deal with this type of situation in WA state. Will I be able to require the tenants to sign a lease once the purchase is complete and will I be able to raise the current rent to market value? I'm familiar with cash for keys but I would like to try and make things work with the current tenants before putting more money into the deal, especially if they've been as good as the current owner states. 

Anyways, any advice would be much appreciated! Cheers!

Thanks Daniel Hyman I’ve been reading up a lot this week on taxes, just trying to understand the ins and outs more without letting myself become overwhelmed. BP has been great for that so far!

I just put an offer in on my first rental property! I’ve been back and forth a little bit with the sellers and it seems like we settled on terms that work for both of us! I’m super excited but I have a lack of knowledge as far as taxes are concerned. If we close in the next few weeks what kind of tax implications can I expect when I file this year? I know my interest amongst other things are considered write offs, but are there any other major items I need to consider as far as taxes? If anyone can just give a brief overview that would be awesome!

And as an afterthought, is it wise to have an inspection done on a trailer and if so should that be happening before or after the purchase? Thanks again!

I'm looking into purchasing a single wide 3 bdrm trailer in the area I live. The asking price is 24K and rents for this type of dwelling in my area tend to be 800-850. While the cash flow potential seems great on paper, I'm curious to hear from somebody with experience what kind of expectations I should realistically harbor going into this. I don't have the exact amount for lot rent but $300-$330 is pretty typical in this area so I decided to run my numbers at $350 to stay well on the safe side. I would be able to use a line of credit to purchase the property outright, but I'm curious if it would be more beneficial to finance it and save more of my investment money? Any info or experience anyone can share will be greatly appreciated!

@Account Closed, great information to know! Thank you!

Thank you Tan Mehedi and Tony Wooldridge , I will speak with a RE lawyer asap, I just moved it to the top of my to do list :) What I meant about ownership i guess would be more specific to refinancing. I know with conventional financing at closing I'd take "control" of that property and be able to refinance after X amount of months. What I'm unsure about is if seller financing is structured the same, would the closing process be the same and would I legally be able to refinance through a bank after a certain amount of time?

Hi Tony Wooldridge , thanks for the response! I don't have a RE attorney as of now. I found a SFR in colfax, 2 bedroom, for 85K. It has some foundation damage and the electrical panel is outdated. I planned on using these as negotiation points after I make an offer. I could easily be wrong but with these issues I don't think I'd be able to get conventional financing so I was considering asking the seller if they'd be willing to finance so I can at least get in to the property and do the necessary upgrades to make it rent ready and safe. At this point would I be able to refinance with conventional financing and pay the seller off? Other than the little bits I've heard about owner financing on the BP podcast I know little about it. And at what point would the ownership of the property transfer to the buyer in this situation? I used to go to school in southern Idaho and would drive through Walla Walla on all my breaks!